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Fate of Aio uncertain in wake of AT&T's acquisition of Leap

In the wake of AT&T Mobility's $1.2 billion acquisition of Leap Wireless, the fate of the company's newly launched Aio prepaid brand is now uncertain. AT&T has said it plans to keep Leap's Cricket brand and offer Cricket customers access to AT&T's network. Aio launched in May with the goal of targeting those same prepaid customers.

According to AT&T spokesman Brad Burns, AT&T has not yet determined what it will do with the Aio prepaid brand. Burns added that no changes will occur with the Aio brand until the acquisition of Leap is finalized, which is not expected to occur for least another six to nine months.

AT&T launched Aio Wireless in May, promising a simplified, no-contract experience and opening up a new front in the prepaid battle with Verizon Wireless, Sprint Nextel and T-Mobile US.

Aio plans include unlimited voice and messaging as well as unlimited data (speeds throttled after specific thresholds) on AT&T's HSPA+ and LTE networks, and range in price from $35 up to $70.

Aio is currently available in select markets such as Houston, Orlando, Tampa, Jacksonville and Gainesville, Fla., but the company has said that it plans to expand it to additional markets across the country over the next year.

AT&T also has the GoPhone prepaid service that is available nationwide. However, unlike Aio, which is not marketed as an AT&T service, GoPhone is a sub-brand of AT&T.

Last week T-Mobile US CEO John Legere hinted that his company is going to launch a new prepaid offering, called Apollo 15, that would target Leap Wireless' Cricket-branded prepaid customer base.

In an interview with the Wall Street Journal, Legere said that the company will go after Leap's customers with a new prepaid offering. "The best way to think about Apollo 15 is T-Mobile network, T-Mobile devices, Leap customers," Legere said, according to the WSJ.

For its part, T-Mobile acquired Leap rival MetroPCS, and is currently taking the Metro brand to an additional 100 million people. Like AT&T, T-Mobile launched a separate brand--GoSmart Mobile--before it acquired MetroPCS. GoSmart also targets the prepaid segment. T-Mobile said its acquisition of MetroPCS won't affect its GoSmart rollout.

The better question is what happens to Leap. If AT&T opens their network to those customers AND leaves pricing the same (unlikely) it seems like Leap would be a better deal than regular AT&T postpaid or AIO.

I love that the big carriers have been in a huge price war on the prepaid field since Boost Mobile launched a nationwide unlimited everything plan for $50 nationwide in January 2009. It only keeps getting better.

so u think that at&t will really offer leap/cricket customers accsess too at&t network ,, what will at&t do with cricket,,,, cause they are cdma ,,will they phase out the cdma an start selling gsm at the cricket stores,,, an will they combine aio an cricket what do u think would be the most beneficial for at& t,,,, me i think that thats what they should do is combind them an call AIO cricket cause the say that aio stands for hello ,,,hello cricket

this way aio can compete with st on a level field.att now has its hand into the cmda cookie jar.smart move on att part.

AT&T is not interested in CDMA. They bought Leap for the spectrum they have in various cities, to help densify AT&T's LTE. Cricket also has LTE. AT&T is going to jettison CDMA as fast at T-mobile is doing with MetroPCS CDMA/LTE.

They will both transition customers over to HSPA/LTE.

AIO doesn't have to go away. T-mobile is keeping the Metro brand as pre-paid budget brand AND also starting this "Apolllo 15" -- plus that 3rd pre-paid GoSmart brand??

Last week T-Mobile US CEO John Legere hinted that his company is going to launch a new prepaid offering, called Apollo 15, that would target Leap Wireless' Cricket-branded prepaid customer base.

Like AT&T, T-Mobile launched a separate brand--GoSmart Mobile--before it acquired MetroPCS. GoSmart also targets the prepaid segment. T-Mobile said its acquisition of MetroPCS won't affect its GoSmart rollout.

I love that the big carriers have been in a huge price war on the prepaid field since Boost Mobile launched a nationwide unlimited everything plan for $50 nationwide in January 2009. It only keeps getting better.

You realize the prepaid guys could go away at the drop of a hat if the post-paid owners of the towers simple willed it to happen...

Remember only an idiot would put their Social Security for a luxury item should as a cellphone. I never understood why people would risk their credit for something that doesn't help their credit.

Credit is over rated. Once you get to the point where you can buy big ticket items (cars/homes not TV's) with cash it doesn't really matter, in fact I started whoring out my credit to the highest bidder and collected $2400 in free money last year (thanks Chase & Citi as well as ING).

My point is don't bite the hand that feeds you. Verizon built out their great network on the backs of the post-paid folks (me for over a decade) and now I'm about to enjoy the pre-paid benefits assuming my trial run is successful. But think about what would happen if VZ and AT&T pulled their MVNOs. Sure you'd have TMobile and "Sprint" but their native networks are atrocious. In fact if VZ and AT&T ended their MVNO programs and roaming agreements with Sprint and TMobile they would have a lock on the cell market for 80% of Americans and damn near 100% of those who travel and live outside of normal city limits*.